Gold-miner stocks surged 33% in August, marking their best monthly performance since at least 1994, outpacing bullion gains by more than three times. The rally was driven by geopolitical turmoil and fiscal uncertainty, despite Federal Reserve Chairman Kevin Warsh's vow to rein in inflation late in the period. The NYSE Arca Gold Miners Index clawed back from a 39% retreat from March's all-time high.

The Van Eck Gold Miners ETF, GDX, marked its highest monthly inflows since February. The price of gold itself jumped just 10% in August. Investors whipsawed by Washington policymakers flocked to the sector as a debasement trade hedge.

Gold mining stocks in Kalgoorlie-Boulder, Western Australia, and broader commodity markets benefited from the momentum.